Medicare, Medigap, and Obamacare

The media has discussed the impact the Affordable Care Act (aka “ACA” and “Obamacare”) will have on Medicare at great lengths.


We are seeing some funding ($716+ Billion) being cut from Medicare and used to pay for the ACA. These cuts to Medicare can be most felt in the medicare advantage (Medicare Part C) plans.  The Federal government subsidizes these plans via payments to the insurance carrier for each medicare beneficiary covered.  The beneficiary assigns their Medicare Part A and Part B to the insurance company, who in turn gives them coverage under their particular Medicare Advantage plan.  If you would like more detail on the difference between the most common medicare plans see the following link:  medicare advantage vs medicare supplement.  These cuts are showing up in lower benefits and more out of pocket exposure to medicare advantage policy holders.


If you are on Medicare or will be enrolling in Medicare soon, visit our sister site which is dedicated to Medicare plan beneficiaries. Click over to My Medigap Consultant to learn more.